"A cash flow generator that allows Rubicon to realize income and acquire a large portfolio
of royalties on non-core properties outside of its holdings in the Red Lake Gold Camp"
- Over 50 active option agreements with junior explorers across Ontario, outside of Red Lake
- Over $4,000,000 in direct revenue to the Company since the inception of ERD in 2003
- Stream of cash and share payments continue to flow to the Company
- Net smelter return royalties retained by Rubicon on all ERD optioned properties
- Rubicon will receive a 1-2% NSR royalty on any ERD optioned property put into production. No ERD properties currently are in production.
The English Royalty Division refers to Rubicon’s active program of acquiring mineral property interests for the purpose of optioning out to other mining exploration companies. As such, it provides the Company with an ongoing revenue stream of cash and shares and a residual royalty position, payable in the event production is realized, in all the properties acquired. It also provides a potential for the Company to retain a 100% interest in an acquired property should it elect to do so.
It was created in May, 2003 when Rubicon purchased claims, royalties and mineral interests controlled by well-known prospector, Perry English. The basic concept was to 'buy back' its own core option deals in Red Lake and thus avoid costly long term obligations. As well, by acquiring other third party agreements owned by Perry English, Rubicon generates a royalty portfolio, as well as an annual income stream.
During the three and nine months ended September, 2011, the Company spent $52,355 and $163,235 respectively on acquisition and maintenance costs and recovered $680,279 and $1,279,119 respectively in cash and shares.
Perry English continues to acquire claims on behalf of Rubicon outside of its core 100-square mile holdings in the Red Lake Gold Camp and options these properties to third parties. Through this arrangement, the ERD has paid back its original costs and is a net cash flow generator to Rubicon.
In 2008, Perry English was honoured with the Ontario Prospectors Association’s Prospector of the Year Award, recognizing his accomplishments and important contributions to prospecting and to the mining industry in Ontario. Perry English is one of Ontario's most respected and prolific prospectors and Rubicon is fortunate to work alongside him to create value for the ERD and identify new opportunities for the Company.
DISCLAIMER:
Rubicon through the ERD, typically options out a 100% interest to third parties on non-core properties. In doing so it does not endorse the exploration merits of the properties themselves and takes no responsibility for third party disclosures on the properties or the parties making them. Investors should carry out their own due diligence on these companies and properties.
Date of Issue: December, 2011